Absorption and Variable Costing Income Statements During the first month of operations ended July 31, YoSan Inc. manufactured 12,500 flat panel televisions, of which 11,500 were sold. Operating data for the month are summarized as follows: Sales Manufacturing costs: Direct materials Direct labor Variable manufacturing cost Fixed manufacturing cost Selling and administrative expenses: Variable Fixed $1,667,500 $850,000 250,000 212,500 112,500 1,425,000 $138,000 63,500 201,500 Required: 1. Prepare an income statement based on the absorption costing concept. 1. Prepare an income statement based on the absorption costing concept. YoSan Inc. Absorption Costing Income Statement For the Month Ended July 31 Cost of goods sold: 10000 2. Prepare an income statement based on the variable costing concept. YoSan Inc. Variable Costing Income Statement For the Month Ended July 31 Variable cost of goods sold: Fixed costs: 00 0000 3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2). The income from operations reported under costing by the difference between the two, due to costing exceeds the income from operations reported under manufacturing costs that are deferred to a future month under Next